HB 1260

           Second Regular Session of the 124th General Assembly (2026)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
  Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2025 Regular Session of the General Assembly.
    HOUSE ENROLLED ACT No. 1260
    AN ACT to amend the Indiana Code concerning insurance.
    Be it enacted by the General Assembly of the State of Indiana:
   SECTION 1. IC 27-1-3-22 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 22. (a) As used in this
section, "fraudulent insurance act" means:
      (1) the preparation or presentation of a written statement as part
      of, or in support of:
          (A) a fraudulent application for the issuance or rating of a
          policy of commercial insurance; or
          (B) a fraudulent claim under a policy of commercial or
          personal insurance; or
      (2) the concealment, for the purpose of misleading, of information
      concerning any fact material to an application or claim described
      in subdivision (1).
   (b) As used in this section, "fraudulent insurance act" includes the
act or omission of a person who, knowingly and with intent to defraud,
does any of the following:
      (1) Presents, causes to be presented, or prepares with knowledge
      or belief that it will be presented, to or by an insurer, a reinsurer,
      a purported insurer or reinsurer, a broker, or an agent of an
      insurer, reinsurer, purported insurer or reinsurer, or broker, an
      oral or written statement that the person knows to contain
      materially false information as part of, in support of, or
      concerning any fact that is material to:
          (A) an application for the issuance of an insurance policy;
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         (B) the rating of an insurance policy;
         (C) a claim for payment or benefit under an insurance policy;
         (D) premiums paid on an insurance policy;
         (E) payments made in accordance with the terms of an
         insurance policy;
         (F) an application for a certificate of authority;
         (G) the financial condition of an insurer, a reinsurer, or a
         purported insurer or reinsurer; or
         (H) the acquisition of an insurer or a reinsurer;
     or conceals any information concerning a subject set forth in
     clauses (A) through (H).
     (2) Solicits or accepts new or renewal insurance risks by or for an
     insolvent insurer, reinsurer, or other entity regulated under this
     title.
     (3) Removes or attempts to remove:
         (A) the assets;
         (B) the record of assets, transactions, and affairs; or
         (C) a material part of the assets or the record of assets,
         transactions, and affairs;
     of an insurer, a reinsurer, or another entity regulated under this
     title, from the home office, other place of business, or place of
     safekeeping of the insurer, reinsurer, or other regulated entity, or
     conceals or attempts to conceal from the department assets or
     records referred to in clauses (A) through (C).
     (4) Diverts, attempts to divert, or conspires to divert funds of an
     insurer, a reinsurer, another entity regulated under the Indiana
     Code, or other persons, in connection with any of the following:
         (A) The transaction of insurance or reinsurance.
         (B) The conduct of business activities by an insurer, a
         reinsurer, or another entity regulated under this title.
         (C) The formation, acquisition, or dissolution of an insurer, a
         reinsurer, or another entity regulated under this title.
   (c) A person or entity regulated under this title that has
knowledge or a reasonable belief that a fraudulent insurance act is
being or has been committed shall furnish the information to:
     (1) the department; or
     (2) the National Insurance Crime Bureau;
not later than sixty (60) days after the person receives notice of the
fraudulent insurance act. If the National Insurance Crime Bureau
receives information under this subsection, the National Insurance
Crime Bureau shall disclose the information to the department.
   (c) (d) A person or entity who acts without malice, fraudulent
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intent, or bad faith is not subject to civil or criminal liability for filing
a report or furnishing, orally or in writing, other information
concerning a suspected, anticipated, or completed fraudulent insurance
act if the report or other information is provided to or received from
any of the following:
      (1) The department or an agent, an employee, or a designee of the
      department.
      (2) Law enforcement officials or an agent or employee of a law
      enforcement official.
      (3) The National Association of Insurance Commissioners.
      (4) Any agency or bureau of federal or state government
      established to detect and prevent fraudulent insurance acts.
      (5) Any other organization established to detect and prevent
      fraudulent insurance acts.
      (6) The National Insurance Crime Bureau.
      (7) Any person or entity regulated under this title.
      (6) (8) An agent, an employee, or a designee of an entity referred
      to in subdivisions (3) through (5). (7).
   (d) (e) This section does not abrogate or modify in any way any
common law or statutory privilege or immunity.
   SECTION 2. IC 27-1-3-23 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 23. (a) For the purposes
of this section, a party is "substantially justified" in initiating a civil
action if the action had a reasonable basis in law or fact at the time the
action was initiated.
   (b) If:
      (1) a person or entity referred to in section 22(c) 22(d) of this
      chapter, or an employee or agent of a person or entity referred to
      in section 22(c), 22(d), is the prevailing party in a civil action for
      libel, slander, or any other relevant tort arising out of the filing of
      a report or the furnishing of information under section 22(c) 22(d)
      of this chapter; and
      (2) the party who initiated the action was not substantially
      justified in initiating the action;
the person, entity, employee, or agent referred to in subdivision (1) is
entitled to an award of attorney's fees and costs.
   SECTION 3. IC 27-1-44.5-12 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 12. (a) Except as provided in
subsections (b), (c), and (e), the fee schedule for each type of
unrestricted data request is as follows:
                   Non-program Affiliated Individual
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Data Set  Per Quarter  Per Year
Member Eligibility  $1,000  $4,000
Medical Claims  $1,500  $6,000
Pharmacy Claims  $ 500  $2,000
Hospital Encounters
Inpatient  $1,500  $6,000
Outpatient  $1,250  $5,000
Emergency Dept.  $1,250  $5,000
             Commercial Entity (Non-redistribution)
Data Set  Per Quarter  Per Year
Member Eligibility  $1,500  $6,000
Medical Claims  $2,250  $9,000
Pharmacy Claims  $ 750  $3,000
Hospital Encounters
Inpatient  $2,250  $9,000
Outpatient  $1,875  $7,500
Emergency Dept.  $1,875  $7,500
                   Nonprofit/Educational Entity
Data Set  Per Quarter  Per Year
Member Eligibility  $ 250  $1,000
Medical Claims  $ 375  $1,500
Pharmacy Claims  $ 125  $ 500
Hospital Encounters
Inpatient  $ 375  $1,500
Outpatient  $ 312.50  $1,250
Emergency Dept.  $ 312.50  $1,250
              Commercial Redistributor (Resellers)
Data Set  Per Quarter  Per Year
Member Eligibility  $2,500  $10,000
Medical Claims  $3,750  $15,000
Pharmacy Claims  $1,250  $5,000
Hospital Encounters
Inpatient  $3,750  $15,000
Outpatient  $3,125  $12,500
Emergency Dept.  $3,125  $12,500
   (b) Data files, reports, or tables not otherwise listed in
subsection (a) or custom data sets must be generated at a base rate
of eighty dollars ($80) per hour with a minimum one (1) hour
charge applied. An additional fee of three cents ($0.03) must be
charged per individual life generated in the data, report, or table.
A written estimate of the total cost must be provided to an entity
that requests data or information under this subsection before the
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request is fulfilled.
    (c) State or local agencies within the geographical boundaries of
Indiana that request data for public distribution or
non-redistribution purposes may not be charged a fee under this
section.
    (d) If it is determined by the data base that access to the analytic
environment is necessary based on the quantity and type of data
requested, the requesting entity will incur an additional licensing
fee of one thousand dollars ($1,000) per month per user.
    (e) Member eligibility data sets for the requested time period
must be provided at no charge if requested along with at least one
(1) other data set.
    (f) A requesting entity may submit to the department a request
for a waiver of any applicable fees if the entirety of the entity's
research findings will be released to the public at no cost to the
reader.
    (g) A fee collected under this section must be deposited in the
department of insurance fund created by IC 27-1-3-28.
    (h) Before November 1, 2026, and before November 1 of each
year thereafter, the department shall submit a report to the budget
committee that contains the following information for the most
recently preceding state fiscal year:
      (1) The total amount of fees collected in total and for each fee
      type of unrestricted data.
      (2) The number of individuals subject to fees in total and for
      each fee type of unrestricted data.
      (3) Additional fee amounts charted in subsection (b) and the
      total amount collected.
      (4) Additional licensing fee amounts charted in subsection (c)
      and the total amount collected.
      (5) The total fund balance in the department of insurance
      fund under IC 27-1-3-28 as of June 30 of the most recently
      preceding state fiscal year.
    SECTION 4. IC 27-2-28-1, AS AMENDED BY P.L.236-2025,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 1. (a) This chapter applies to a personal
automobile or homeowner's policy that is issued, delivered, amended,
or renewed on or after June 30, 2026. January 1, 2027.
    (b) This chapter does not apply to:
      (1) notices required by the federal Fair Credit Reporting Act (15
      U.S.C. 1681 et seq.); or
      (2) declinations of coverage.
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   SECTION 5. IC 27-2-28-2, AS ADDED BY P.L.226-2023,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. (a) As used in this chapter, "automobile policy"
means a policy providing one (1) or more of the types of insurance
described in Class 2(f) of IC 27-1-5-1.
   (b) The term includes an automobile policy under which the
insured vehicle designated in the policy is rated as private
passenger.
   (c) The term does not include personal insurance policies for the
coverage of:
     (1) boats;
     (2) inland marine;
     (3) motorcycles;
     (4) off-road vehicles;
     (5) recreational vehicles;
     (6) trailers;
     (7) fleets;
     (8) antique or collector vehicles;
     (9) classic vehicles;
     (10) specialty vehicles; or
     (11) any other personal insurance policy not listed in
     subdivisions (1) through (10).
   SECTION 6. IC 27-2-28-3, AS ADDED BY P.L.226-2023,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 3. (a) As used in this chapter, "homeowner's
policy" means a policy that provides:
     (1) coverage for:
         (A) damage to or the destruction of:
           (i) a structure; or
           (ii) a unit within a structure;
         that is used as a residence by one (1) or more individuals; and
         (B) damage to or the loss of personal property that is present
         in the structure or unit described in clause (A);
     caused by perils such as fire, hail, and lightning; and
     (2) coverage against the civil liability of the policyholder arising
     from bodily injury or property damage incurred by others.
   (b) The term includes a mobile homeowner's policy,
manufactured homeowner's policy, condominium homeowner's
policy, and renter's coverage.
   (c) The term does not include farm policies, nonowner occupied
dwellings, other residential policies that are not written on a
homeowner's policy form or other landlord policies.
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   SECTION 7. IC 27-2-28-6, AS ADDED BY P.L.226-2023,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 6. (a) As used in this chapter, "material change"
means
     (1) an a premium increase of more than ten percent (10%) over
     the expiring premium for; or and above the increases in the
     insurer's filed rate plan, including base rate increases and any
     other changes to the insurer's filed rate plan.
     (2) another adverse or unfavorable change in the terms of
     coverage or amount of;
insurance in connection with a personal automobile or homeowner's
policy.
   (b) The term does not include the following:
     (1) An increase in the insurer's filed rate plan and automatic
     inflationary increases.
     (2) An additional premium due to a change initiated by the
     insured, such as:
         (A) adding or removing vehicles or drivers;
         (B) adding an endorsement;
         (C) adding additional coverages;
         (D) adding covered premises; or
         (E) increasing coverage limits or deductibles.
     (3) An additional premium due to a change in risk exposure as a
     result of the insured's participation in a usage based or telematics
     insurance program.
     (4) Changes resulting from a property inspection.
     (5) For purposes of the second or subsequent renewals, rate
     increases that are implemented over more than one (1) policy
     period if:
         (A) the implementation plan is included in the insurer's
         filed rate plan; or
         (B) the increase for any one (1) policy period is not more
         than ten percent (10%) over the expiring policy period's
         premium.
   SECTION 8. IC 27-2-28-8, AS ADDED BY P.L.226-2023,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 8. (a) An insurer that makes a material change to
an insured's personal automobile or homeowner's policy shall provide
a written notice to the insured that:
     (1) explains the principal factors for the material change; or
     (2) states that the insured has a right to request and obtain an
     explanation of the principal factors for the material change.
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    (b) Not later than thirty (30) days after an insured who receives
a notice of a material change described in subsection (a)(2), the
insured may submit to the insurer a written request for an explanation
of the principal factors for the material change.
    (c) Upon Not later than forty-five (45) days after receiving a
request for an explanation under subsection (b), the insurer shall
provide written notice to the insured explaining the principal factors for
the material change.
    (d) An insurer shall provide a copy of a written notice provided
under subsection (a)(1) or (c):
      (1) to the insurance producer, if any, who:
          (A) represented:
            (i) the insured in obtaining coverage from the insurer; or
            (ii) the insurer in regard to the providing of coverage to the
            insured; and
          (B) is not an employee, an exclusive agent, or a captive agent
          of the insurer; and
      (2) to the insurer's reporting portal for agent communications.
    (e) A written notice provided under subsection (a) or (c), or a
written request submitted under subsection (b), must be provided by:
      (1) first class mail; or
      (2) electronic delivery as set forth in IC 27-1-43.
    SECTION 9. IC 27-2-28-12, AS ADDED BY P.L.226-2023,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 12. (a) The commissioner shall adopt rules under
IC 4-22-2 to implement this chapter.
    (b) The rules adopted under subsection (a) must include monetary
penalties for a violation of this chapter that are consistent with other
penalties assessed for similar violations under this title.
    (c) (b) The commissioner is solely responsible for the enforcement
of this chapter.
    SECTION 10. IC 27-5.1-2-24.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 24.5. (a) The commissioner may
waive the requirements of this chapter or IC 27-1-9, whichever is
applicable, for a merger or consolidation of a farm mutual
insurance company with any other company (as defined in
IC 27-1-2-3) if:
      (1) the farm mutual insurance company is notified that it will
      lose reinsurance coverage within one hundred twenty (120)
      days; or
      (2) another emergency event occurs that places the farm
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      mutual insurance company in imminent danger of insolvency.
    (b) A farm mutual insurance company that decides to merge or
consolidate as a result of an emergency event described in
subsection (a) shall provide notice of the emergency event to the
commissioner not later than ten (10) days after the emergency
event occurs.
    (c) The commissioner shall issue a decision on the proposed
merger or consolidation not more than ninety (90) days after
receiving notice from a farm mutual insurance company under
subsection (b).
    SECTION 11. IC 27-6-8-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 3. This chapter applies
to all kinds of direct insurance except:
      (1) life, annuity, health, or disability insurance;
      (2) mortgage guaranty, financial guaranty, or other forms of
      insurance offering protection against investment risks;
      (3) fidelity or surety bonds, or any other bonding obligations;
      (4) credit insurance, vendors' single interest insurance, or
      collateral protection insurance or similar insurance with the
      primary purpose of protecting the interests of a creditor arising
      out of a creditor-debtor transaction;
      (5) other than coverages that may be set forth in a
      cybersecurity insurance policy, warranty or service contract
      insurance, including insurance that provides:
          (A) for the repair, replacement, or service of goods or
          property;
          (B) indemnification for repair, replacement, or service for
          the operational or structural failure of the goods or
          property due to a defect in materials, workmanship, or
          normal wear and tear; or
          (C) reimbursement for the liability incurred by the issuer
          of agreements or service contracts that provide the benefits
          described in clauses (A) and (B);
      (6) title insurance;
      (7) ocean marine insurance;
      (8) a transaction between a person or an affiliate of a person and
      an insurer or an affiliate of an insurer that involves the transfer of
      investment or credit risk without a transfer of insurance risk;
      (9) insurance provided by or guaranteed by a government entity;
      and
      (10) insurance written on a retroactive basis to cover known
      losses for which a claim has already been made and the claim is
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     known to the insurer at the time the insurance is bound.
   SECTION 12. IC 27-6-8-4, AS AMENDED BY P.L.158-2024,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 4. (a) As used in this chapter, unless otherwise
provided:
     (1) The term "account" means any one (1) of the three (3)
     accounts created by section 5 of this chapter.
     (2) The term "association" means the Indiana Insurance Guaranty
     Association created by section 5 of this chapter.
     (3) The term "commissioner" means the commissioner of
     insurance of this state.
     (4) The term "covered claim" means an unpaid claim which arises
     out of and is within the coverage and not in excess of the
     applicable limits of an insurance policy to which this chapter
     applies issued by an insurer, if the insurer becomes an insolvent
     insurer after the effective date (January 1, 1972) of this chapter
     and (a) the claimant or insured is a resident of this state at the
     time of the insured event or (b) the property from which the claim
     arises is permanently located in this state. "Covered claim" shall
     be limited as provided in section 7 of this chapter, and shall not
     include the following:
         (A) Any amount due any reinsurer, insurer, insurance pool, or
         underwriting association, as subrogation recoveries or
         otherwise. However, a claim for any such amount, asserted
         against a person insured under a policy issued by an insurer
         which has become an insolvent insurer, which if it were not a
         claim by or for the benefit of a reinsurer, insurer, insurance
         pool or underwriting association, would be a "covered claim"
         may be filed directly with the receiver or liquidator of the
         insolvent insurer, but in no event may any such claim be
         asserted in any legal action against the insured of such
         insolvent insurer.
         (B) Any supplementary obligation including but not limited to
         adjustment fees and expenses, attorney fees and expenses,
         court costs, interest and bond premiums, whether arising as a
         policy benefit or otherwise, prior to the appointment of a
         liquidator.
         (C) Any unpaid claim that is filed with the association after the
         final date set by the court for the filing of claims against the
         liquidator or receiver of an insolvent insurer. For the purpose
         of filing a claim under this clause, notice of a claim to the
         liquidator of the insolvent insurer is considered to be notice to
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      the association or the agent of the association and a list of
      claims must be periodically submitted to the association (or
      another state's association that is similar to the association) by
      the liquidator.
      (D) A claim that is excluded under section 11.5 of this chapter
      due to the high net worth of an insured.
      (E) Any claim by a person who directly or indirectly controls,
      is controlled, or is under common control with an insolvent
      insurer on December 31 of the year before the order of
      liquidation.
      (F) Any amount awarded as punitive or exemplary
      damages.
      (G) Any amount sought as a return of premium under any
      retrospective rating plan.
      (H) Any claim filed with the association or a liquidator for
      protection afforded under the insured's policy for incurred
      but not reported losses.
   All covered claims filed in the liquidation proceedings shall be
   referred immediately to the association by the liquidator for
   processing as provided in this chapter.
   (5) "Cybersecurity insurance" means first and third party
   coverage in a policy or endorsement written on a direct,
   admitted basis for losses and loss mitigation arising out of or
   relating to:
      (A) data privacy breaches;
      (B) unauthorized information network security intrusions;
      (C) computer viruses;
      (D) ransomware;
      (E) cyber extortion;
      (F) identity theft; and
      (G) similar exposures.
   (5) (6) The term "high net worth insured" means the following:
      (A) For purposes of section 11.5(a) of this chapter, an insured
      that has a net worth (including the aggregate net worth of the
      insured and all subsidiaries and affiliates of the insured,
      calculated on a consolidated basis) that exceeds twenty-five
      million dollars ($25,000,000) on December 31 of the year
      immediately preceding the year in which the insurer becomes
      an insolvent insurer.
      (B) For purposes of section 11.5(b) of this chapter, an insured
      that has a net worth (including the aggregate net worth of the
      insured and all subsidiaries and affiliates of the insured,
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       calculated on a consolidated basis) that exceeds fifty million
       dollars ($50,000,000) on December 31 of the year immediately
       preceding the year in which the insurer becomes an insolvent
       insurer.
   (6) (7) The term "insolvent insurer" means (a) a member insurer
   holding a valid certificate of authority to transact insurance in this
   state either at the time the policy was issued or when the insured
   event occurred and (b) against whom a final order of liquidation,
   with a finding of insolvency, to which there is no further right of
   appeal, has been entered by a court of competent jurisdiction in
   the company's state of domicile. "Insolvent insurer" shall not be
   construed to mean an insurer with respect to which an order,
   decree, judgment or finding of insolvency whether preliminary or
   temporary in nature or order to rehabilitation or conservation has
   been issued by any court of competent jurisdiction prior to
   January 1, 1972 or which is adjudicated to have been insolvent
   prior to that date.
   (8) The term "insured" means any named insured, any
   additional insured, any vendor, lessor, or any other party
   identified as an insured under the policy.
   (7) (9) The term "member insurer" means any person who is
   licensed or holds a certificate of authority under IC 27-1-6-18 or
   IC 27-1-17-1 to transact in Indiana any kind of insurance for
   which coverage is provided under section 3 of this chapter,
   including the exchange of reciprocal or inter-insurance contracts.
   The term includes any insurer whose license or certificate of
   authority to transact such insurance in Indiana may have been
   suspended, revoked, not renewed, or voluntarily surrendered. A
   "member insurer" does not include farm mutual insurance
   companies organized and operating pursuant to IC 27-5.1 other
   than a company to which IC 27-5.1-2-6 applies.
   (8) (10) The term "net direct written premiums" means direct
   gross premiums written in this state on insurance policies to
   which this chapter applies, less return premiums thereon and
   dividends paid or credited to policyholders on such direct
   business. "Net direct premiums written" does not include
   premiums on contracts between insurers or reinsurers.
   (9) (11) The term "person" means an individual, an aggregation
   of individuals, a corporation, a partnership, or another entity.
   (12) The term "receiver" means liquidator, rehabilitator,
   conservator, or ancillary receiver, as the context requires.
   (13) The term "self-insurer" means a person who covers the
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      person's liability through a qualified individual or group
      self-insurance program or any other formal program created
      for the specific purpose of covering liabilities typically
      covered by insurance.
    (b) Notwithstanding any other provision in this chapter, an
insurance policy that is issued by a member insurer and later allocated,
transferred, assumed by, or otherwise made the sole responsibility of
another insurer, pursuant to a state statute providing for the division of
an insurance company or the statutory assumption or transfer of
designated policies and under which there is no remaining obligation
to the transferring entity, shall be considered to have been issued by a
member insurer which is an insolvent insurer for the purposes of this
chapter in the event that the insurer to which the policy has been
allocated, transferred, assumed by, or otherwise made the sole
responsibility of is placed in liquidation.
    (c) An insurance policy that was issued by a nonmember insurer and
later allocated, transferred, assumed by, or otherwise made the sole
responsibility of a member insurer under a state statute shall not be
considered to have been issued by a member insurer for the purposes
of this chapter.
    SECTION 13. IC 27-6-8-5, AS AMENDED BY P.L.158-2024,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 5. There is created a nonprofit unincorporated
legal entity to be known as the Indiana Insurance Guaranty Association
(referred to in this chapter as the "association"). All insurers defined as
member insurers in section 4(a)(7) 4(a)(9) of this chapter shall be and
remain members of the association as a condition of their authority to
transact insurance in this state. The association shall perform its
functions under a plan of operation established and approved under
section 8 of this chapter and shall exercise its powers through a board
of directors established under section 6 of this chapter. For purposes of
administration and assessment, the association shall be divided into
three (3) separate accounts:
      (1) The worker's compensation insurance account.
      (2) The automobile insurance account.
      (3) The account for all other insurance to which this chapter
      applies.
    SECTION 14. IC 27-6-8-7, AS AMENDED BY P.L.52-2013,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 7. (a) The association shall do all of the following:
      (1) Be obligated to pay covered claims existing before the order
      of liquidation, or arising within thirty (30) days after the order of
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                                 14
   liquidation, or before the policy expiration date if less than thirty
   (30) days after the order of liquidation, or before the insured
   replaces the policy or causes its cancellation, if the insured does
   so within thirty (30) days of the order of liquidation. The
   obligation shall be satisfied by paying to the claimant an amount
   as follows:
       (A) The full amount of a covered claim for benefits under
       worker's compensation insurance.
       (B) With respect to a claim for the return of unearned
       premium, the lesser of: an amount not exceeding ten
       thousand dollars ($10,000) per policy for a covered claim
       for the return of unearned premium, but the obligation
       shall include only the amount of each covered claim that is
       in excess of fifty dollars ($50).
         (i) eighty percent (80%) of the paid but unearned premium;
         or
         (ii) six hundred fifty dollars ($650) multiplied by the
         number of months or partial months remaining in the policy
         term, not to exceed twelve (12) months.
       (C) An amount not to exceed three hundred thousand dollars
       ($300,000) per covered claim. For purposes of this clause, all
       claims of any kind that arise out of or are related to the bodily
       injury to or death of one (1) person constitute a single claim,
       regardless of the number of claims made or the number of
       claimants.
       (D) In no event shall the association be obligated to pay an
       amount in excess of three hundred thousand dollars
       ($300,000) for all first and third party claims under a
       policy or endorsement providing, or that is found to
       provide, cybersecurity insurance coverage and arising out
       of or related to a single insured event, regardless of the
       number of claims made or the number of claimants.
   The association is not, in any event, obligated to pay a claimant
   any amount in excess of the obligation of the insolvent insurer
   under the policy or coverage from which the claim arises.
   Notwithstanding any other provision in this chapter, a
   covered claim may not include a claim filed with the guaranty
   fund after the final date set by the court for the filing of
   claims against the liquidator or receiver of an insolvent
   insurer.
   In the case of a claim for wrongful death, the foregoing obligation
   of the association shall, in addition to the limits set forth above,
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                                15
   be subject to the limitations provided by the wrongful death
   statutes of the state. Such amounts which are legally payable
   because of the death of a claimant shall be paid to the claimant's
   estate, to the claimant's father or mother or guardian, to the
   surviving spouse or children, or to the next of kin as set out in
   IC 34-23-1 and IC 34-23-2.
   The amount for which the association shall be obligated may also
   include payments in fact made to others, not members of
   claimant's household, which were reasonably incurred to obtain
   from such other persons ordinary and necessary services for the
   production of income in lieu of those services the claimant would
   have performed for the claimant had the claimant not been
   injured.
   In the case of claims arising from bodily injury, sickness, or
   disease, including those in which death results, under IC 22-3 or
   similar state or federal laws providing benefits for occupational
   injury or disease, the association is obligated only to the extent
   provided under IC 22-3.
   A third party having a covered claim against any insured of an
   insolvent member insurer may file such claim in the liquidation
   proceeding under IC 27-9-3 if such insolvent member insurer is
   a domestic insurer and pursuant to the applicable provisions of
   law of the state of domicile if such insolvent member insurer is
   not a domestic insurer. The liquidator shall immediately refer said
   claim to the association to process as provided in this chapter
   unless the claimant shall within thirty (30) days from the date of
   filing said claim in the liquidation proceeding, file with the
   commissioner as liquidator a written demand that said claim be
   processed in liquidation proceedings as a claim not covered by
   this chapter.
   (2) Be deemed the insurer to the extent of its obligation on the
   covered claims as limited by this chapter and to this extent shall
   have all rights, duties, and obligations of the insolvent insurer as
   if the insurer had not become insolvent, including those relating
   to reinsurance contracts and treaties entered into by the insolvent
   insurer. However, the association's obligation to defend any
   insured of the insolvent insurer or to indemnity indemnify against
   the costs of such defense terminates as soon as the claimant or
   claimants have been paid all benefits that they are entitled to
   under this chapter.
   (3) Allocate claims paid and expenses incurred among the three
   (3) accounts separately, and assess member insurers separately for
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                                16
   each account amounts necessary to pay the obligation of the
   association under subdivision (1) subsequent to an insolvency, the
   expenses of handling covered claims subsequent to an insolvency,
   the cost of examination under IC 27-6-8-12 and other expenses
   authorized by this chapter. There are two (2) classes of
   assessments as follows:
       (A) Class A assessments are assessments that are
       authorized and called by the board for the purpose of
       meeting administrative and legal costs and other expenses.
       Class A assessments may be authorized and called whether
       or not related to a particular impaired insurer or insolvent
       insurer.
       (B) Class B assessments are assessments that are
       authorized and called by the board to the extent necessary
       to carry out the powers and duties of the association under
       this chapter with regard to an impaired insurer or
       insolvent insurer.
   The amount of a Class A assessment must be determined by
   the board and may be authorized and called on a pro rata or
   non-pro rata basis. If pro rata, the board may provide that
   the assessment be credited against future Class B assessments.
   The amount of a Class B assessment assessments of each
   member insurer shall be on a uniform percentage basis in the
   proportion that the net direct written premiums in this state of the
   member insurer for the preceding calendar year on the kinds of
   insurance in the account bears to the net direct written premiums
   of all member insurers for the preceding calendar year on the
   kinds of insurance in the account. However, in addition to the pro
   rata assessments already described, an assessment may be made
   against each member insurer in a stated amount up to fifty dollars
   ($50) per year for the purpose of paying the administrative
   expenses of the association. There shall be no Class B assessment
   for any account so long as assets held in such account are
   sufficient to cover all estimated payments for liquidation in
   process under such account. Each member insurer shall be
   notified of the assessment not later than thirty (30) days before it
   is due. No member insurer may be assessed in any year on any
   account an amount greater than one percent (1%) of that member
   insurer's net direct written premiums in this state for the
   preceding calendar year on the kinds of insurance in the account.
   If the maximum assessment, together with the other assets of the
   association in any account, does not provide in any one (1) year
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                                 17
   in any account an amount sufficient to make all necessary
   payments from that account, the funds available shall be prorated
   and the unpaid portion shall be paid as soon thereafter as funds
   become available. The association may exempt or defer, in whole
   or in part, the assessment of any member insurer, if the
   assessment would cause the member insurer's financial statement
   to reflect amounts of capital or surplus less than the minimum
   amounts required for a certificate of authority by any jurisdiction
   in which the member insurer is authorized to transact insurance.
   However, during the period of deferment no dividends shall be
   paid to shareholders or policyholders by a company whose
   assessment has been deferred. A deferred assessment shall be
   paid when such payment will not reduce capital or surplus below
   required minimums. Such payments shall be refunded to those
   companies whose assessments were increased as the result of
   such deferment, or at the option of any such company, shall be
   credited to future assessments against such company.
   (4) Investigate, adjust, compromise, settle, and pay covered
   claims to the extent of the association's obligation and deny all
   other claims and may review settlements, releases, and judgments
   to which the insolvent insurer or its insured were parties to
   determine the extent to which such settlements, releases, and
   judgments may be properly contested, and as appropriate to
   contest them. The association shall pay claims in any order
   that it may deem reasonable, including the payment of claims
   as they are received from the claimants or in groups or
   categories of claims. The association shall have the right to
   appoint and to direct legal counsel retained under liability
   insurance policies for the defense of covered claims and to
   appoint and direct other service providers for covered
   services.
   (5) Notify such persons as the commissioner directs under
   IC 27-6-8-9(b)(i).
   (6) Handle claims through its employees or through one (1) or
   more insurers or other persons designated as servicing facilities.
   Designation of a servicing facility is subject to the approval of the
   commissioner, but such designation may be declined by a member
   insurer.
   (7) Reimburse each servicing facility for obligations of the
   association paid by the facility and for expenses incurred by the
   facility while handling claims on behalf of the association and
   shall pay the other expenses of the association authorized by this
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                                18
   chapter. Any unreimbursed obligation of the association to a
   member insurer designated a servicing facility shall constitute an
   admitted asset of such member insurer.
   (8) Be entitled to and permitted to examine all claims, files, and
   records of an insolvent insurer at such times and to such extent as
   necessary or appropriate to obtain information regarding covered
   claims individually and in the aggregate, and to establish such
   procedures as appropriate to obtain prompt notice of all covered
   claims and information pertaining thereto during the course of
   liquidation.
   (9) Have the right to review and contest, as set forth in this
   subsection, settlements, releases, compromises, waivers, and
   judgments to which the insolvent insurer or its insureds were
   parties before the entry of the order of liquidation. In an
   action to enforce settlements, releases, and judgments to
   which the insolvent insurer or its insureds were parties before
   the entry of the order of liquidation, the association shall have
   the right to assert the following defenses, in addition to the
   defenses available to the insurer:
      (A) The association is not bound by a settlement, release,
      compromise, or waiver executed by an insured or the
      insurer or any judgment entered against an insured or the
      insurer by consent or through a failure to exhaust all
      appeals, if the settlement, release, compromise, waiver, or
      judgment was:
        (i) executed or entered within one hundred twenty (120)
        days before the entry of an order of liquidation and the
        insured or insurer did not use reasonable care in
        entering into the settlement, release, compromise,
        waiver, or judgment or did not pursue all reasonable
        appeals of an adverse judgment; or
        (ii) executed by or taken against an insured or the
        insurer based on default, fraud, collusion, or the
        insurer's failure to defend.
      (B) If a court of competent jurisdiction finds that the
      association is not bound by a settlement, release,
      compromise, waiver, or judgment for the reasons
      described in clause (A), the settlement, release,
      compromise, waiver, or judgment shall be set aside and the
      association shall be permitted to defend any covered claim
      on the merits. The settlement, release, compromise, waiver,
      or judgment may not be considered as evidence of liability
HEA 1260 — Concur
                                  19
        or damages in connection with any claim brought against
        the association or any other party under this chapter.
        (C) The association shall have the right to assert any
        statutory defenses or rights of offset against any
        settlement, release, compromise, or waiver executed by an
        insured or the insurer or any judgment taken against the
        insured or the insurer.
    (10) As to any covered claims arising from a judgment under
    any decision, verdict, or finding based on the default of the
    insolvent insurer or its failure to defend, the association,
    either on its own behalf or on behalf of an insured, may apply
    to have the judgment, order, decision, verdict, or finding set
    aside by the same court or administrator that entered the
    judgment, order, decision, verdict, or finding and shall be
    permitted to defend the claim on the merits.
  (b) The association may do the following:
    (1) Appear in, defend, and appeal any action on a covered claim,
    but the association shall have no obligation to pay any amount in
    excess of the provisions of IC 27-6-8-7.
    (2) Employ or retain such persons as are necessary to handle
    claims and perform other duties of the association.
    (3) Borrow funds necessary to effect the purposes of this chapter
    in accord with the plan of operation.
    (4) Sue or be sued.
    (5) Negotiate and become a party to any contracts as are
    necessary to carry out the purpose of this chapter.
    (6) Perform such other acts as are necessary or proper to
    effectuate the purpose of this chapter.
    (7) Refund to the then member insurers in proportion to the
    contribution of each such member insurer to that account that
    amount by which the assets of the account exceed the liabilities
    if, at the end of the calendar year, the board of directors finds that
    the assets of the association in any account exceed the liabilities
    of that account as estimated by the board of directors for the
    coming year, provided that the association may retain as a reserve
    fund from the excess of the assets over liabilities at the end of any
    calendar year an amount not to exceed ten percent (10%) of such
    excess assets of such account. Any such reserve fund or earnings
    from its investment shall be used only for the payment of covered
    claims and authorized association expenses. Upon appropriate
    action by the board of directors such reserve fund shall be
    refunded to the then member insurers in proportion to the total
HEA 1260 — Concur
                                   20
     contribution of each such member insurer to such account.
   (c) The following apply with respect to an action involving the
association:
     (1) Except for an action by the receiver, an action related to or
     arising out of this chapter against the association must be brought
     in an Indiana court.
     (2) Indiana courts have exclusive jurisdiction over all actions
     against the association related to or arising out of this chapter.
     (3) The exclusive venue for an action by or against the association
     is in the Marion County Circuit Court, Marion County, Indiana.
     However, the association may waive this venue for a particular
     action.
   SECTION 15. IC 27-6-8-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 9. (a) The
commissioner shall:
     (i) Notify the association of the existence of an insolvent insurer
     not later than three (3) working days after the commissioner
     receives an order of liquidation.
     (ii) Upon request of the board of directors, provide the association
     with a statement of the net direct written premiums of each
     member insurer.
   (b) The commissioner may:
     (i) Require that the association notify the insureds of the insolvent
     insurer and any other interested parties of the order of liquidation
     and of their rights under this chapter. This notification shall be by
     mail at their last known address, where available, but if sufficient
     information for notification by mail is not available, notice by
     publication in a newspaper of general circulation in all counties
     in which the insolvent insurer transacted insurance business shall
     be sufficient.
     (ii) Require each insurance producer of the insolvent insurer to
     give prompt written notice by first class mail of such insolvency
     and the rights of the insured under this chapter to each insured of
     the insolvent insurer for whom the insurance producer is
     insurance producer of record, at such insured's last known
     address.
     (iii) Suspend or revoke, after notice and hearing, the certificate of
     authority to transact insurance in this state of any member insurer
     which fails to pay an assessment when due or fails to comply with
     the plan of operation. As an alternative, the commissioner may
     levy a fine on any member insurer which fails to pay an
     assessment when due. The fine shall not exceed five percent (5%)
HEA 1260 — Concur
                                  21
     of the unpaid assessment per month, except that no fine shall be
     less than one hundred dollars ($100) per month.
     (iv) Revoke the designation of any servicing facility if the
     commissioner finds claims are being handled unsatisfactorily.
     (v) Any final action or order of the commissioner under this
     chapter shall be subject to judicial review in a court of competent
     jurisdiction.
   (c) If the commissioner determines that any member insurer
may be subject to a future delinquency proceeding under IC 27-9,
the commissioner may do the following to assist in the performance
of the commissioner's duties:
     (1) Share confidential and privileged documents, material, or
     information reported under an enterprise risk filing with the
     association regarding the member insurer.
     (2) Share confidential and privileged documents, material, the
     contents of an examination report, a preliminary examination
     report or its results, or any matter relating thereto, including
     working papers, recorded information, documents, and copies
     thereof produced by, obtained by, or disclosed to the
     commissioner or to any other person in the course of any
     examination with the association regarding the member
     insurer.
     (3) Disclose the information described in this subsection to the
     association so long as the association agrees in writing to hold
     the information confidential in a manner consistent with this
     chapter and uses the information to prepare for the possible
     liquidation of the member insurer. Access to the information
     disclosed by the commissioner to the association under this
     subsection shall be limited to the association's staff and its
     counsel. The board of directors of the association may have
     access to the information disclosed by the commissioner to the
     association once the member insurer is subject to a
     delinquency proceeding under IC 27-9, subject to any terms
     and conditions established by the commissioner.
     (4) Disclose the information described in this subsection with
     associations in other states and with any organization of one
     (1) or more state associations of similar purposes so long as
     the recipient of the information agrees in writing to hold the
     information confidential in a manner consistent with this
     chapter and uses the information to prepare for the possible
     liquidation of the member insurer. Access to the information
     disclosed by the commissioner under this subsection shall be
HEA 1260 — Concur
                                   22
      limited to the association's staff and its counsel. The board of
      directors of the association may have access to the
      information disclosed by the commissioner to the association
      once the member insurer is subject to a delinquency
      proceeding under IC 27-9, subject to any terms and conditions
      established by the commissioner.
      (5) If the commissioner determines that a liquidation is likely,
      the commissioner may cooperate with the association and
      with any organization of one (1) or more state associations of
      similar purposes to provide for an orderly transition to
      liquidation to minimize any delay in the handling and
      payment of claims.
   SECTION 16. IC 27-6-8-11.5, AS AMENDED BY P.L.158-2024,
SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 11.5. (a) The association is not obligated to pay
a first party claim by a high net worth insured described in section
4(a)(5)(A) 4(a)(6)(A) of this chapter.
   (b) The association has the right to recover from a high net worth
insured described in section 4(a)(5)(B) 4(a)(6)(B) of this chapter all
amounts paid by the association to or on behalf of the high net worth
insured, regardless of whether the amounts were paid for indemnity,
defense, or otherwise.
   (c) The association is not obligated to pay a claim that:
      (1) would otherwise be a covered claim;
      (2) is an obligation to or on behalf of a person who has a net
      worth greater than the net worth allowed by the insurance
      guaranty association law of the state of residence of the claimant
      at the time specified by the applicable law of the state of
      residence of the claimant; and
      (3) has been denied by the association of the state of residence of
      the claimant on the basis described in subdivision (2).
   (d) The association may also, at its sole discretion and without
assumption of any ongoing duty to do so, pay any third party
claims or cybersecurity insurance obligations covered by a policy
or endorsement of an insolvent company on behalf of a high net
worth insured. In that case, the association shall recover from the
high net worth insured under this section all amounts paid on its
behalf, all allocated claim adjusted expenses relating to the claims,
the association's attorney's fees, and all court costs in any action
necessary to collect the full amount to the association's
reimbursement under this section.
   (d) (e) The association shall establish reasonable procedures,
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                                   23
subject to the approval of the commissioner, for requesting financial
information from insureds:
       (1) on a confidential basis; and
       (2) in the application of this section.
    (e) (f) The procedures established under subsection (d) (e) must
provide for sharing of the financial information obtained from insureds
with:
       (1) any other association that is similar to the association; and
       (2) the liquidator for an insolvent insurer;
on the same confidential basis.
    (f) (g) If an insured refuses to provide financial information that is:
       (1) requested under the procedures established under subsection
       (d); (e); and
       (2) available;
the association may, until the time that the financial information is
provided to the association, consider the insured to be a high net worth
insured for purposes of subsections (a) and (b).
    (g) (h) In an action contesting the applicability of this section to an
insured that refuses to provide financial information under the
procedures established under subsection (d), (e), the insured bears the
burden of proof concerning the insured's net worth at the relevant time.
If the insured fails to prove that the insured's net worth at the relevant
time was less than the applicable amount set forth in section 4(a)(5)(A)
4(a)(6)(A) or 4(a)(5)(B) 4(a)(6)(B) of this chapter, the court shall
award to the association the association's full costs, expenses, and
reasonable attorney's fees incurred in contesting the claim.
    SECTION 17. IC 27-6-8-20 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 20. (a) The association may join one (1) or more
organizations of other state associations of similar purposes to
further the purposes and administer the powers and duties of the
association. The association may designate one (1) or more of these
organizations to:
       (1) act as a liaison for the association; and
       (2) to the extent the association authorizes, bind the
       association in agreements or settlements with receivers of
       insolvent insurance companies or their designated
       representatives.
    (b) The association, in cooperation with other obligated or
potentially obligated guaranty associations or their designated
representatives, shall make all reasonable efforts to coordinate and
cooperate with receivers or their designated representatives in the
HEA 1260 — Concur
                                    24
most efficient and uniform manner, including the use of Uniform
Data Standards as promulgated or approved by the National
Association of Insurance Commissioners.
    SECTION 18. IC 27-7-5-2, AS AMENDED BY P.L.130-2020,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 2. (a) Except as provided in subsections (d), (f),
and (h), the insurer shall make available, in each automobile liability
or motor vehicle liability policy of insurance which is delivered or
issued for delivery in this state with respect to any motor vehicle
registered or principally garaged in this state, insuring against loss
resulting from liability imposed by law for bodily injury or death
suffered by any person and for injury to or destruction of property to
others arising from the ownership, maintenance, or use of a motor
vehicle, or in a supplement to such a policy, the following types of
coverage:
      (1) in limits for bodily injury or death and for injury to or
      destruction of property not less than those set forth in IC 9-25-4-5
      under policy provisions approved by the commissioner of
      insurance, for the protection of persons insured under the policy
      who are legally entitled to recover damages from owners or
      operators of uninsured or underinsured motor vehicles because of
      bodily injury, sickness or disease, including death, and for the
      protection of persons insured under the policy who are legally
      entitled to recover damages from owners or operators of
      uninsured motor vehicles for injury to or destruction of property
      resulting therefrom; or
      (2) in limits for bodily injury or death not less than those set forth
      in IC 9-25-4-5 under policy provisions approved by the
      commissioner of insurance, for the protection of persons insured
      under the policy provisions who are legally entitled to recover
      damages from owners or operators of uninsured or underinsured
      motor vehicles because of bodily injury, sickness or disease,
      including death resulting therefrom.
The uninsured and underinsured motorist coverages must be provided
by insurers for either a single premium or for separate premiums, in
limits at least equal to the limits of liability specified in the bodily
injury liability provisions of an insured's policy, unless such coverages
have been rejected in writing by the insured. However, underinsured
motorist coverage must be made available in limits of not less than fifty
thousand dollars ($50,000). At the insurer's option, the bodily injury
liability provisions of the insured's policy may be required to be equal
to the insured's underinsured motorist coverage. Insurers may not sell
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                                   25
or provide underinsured motorist coverage in an amount less than fifty
thousand dollars ($50,000). Insurers must make underinsured motorist
coverage available to all existing policyholders on the date of the first
renewal of existing policies that occurs on or after January 1, 1995, and
on any policies newly issued or delivered on or after January 1, 1995.
Uninsured motorist coverage or underinsured motorist coverage may
be offered by an insurer in an amount exceeding the limits of liability
specified in the bodily injury and property damage liability provisions
of the insured's policy.
    (b) A named insured of an automobile or motor vehicle liability
policy has the right, in writing, to:
      (1) reject both the uninsured motorist coverage and the
      underinsured motorist coverage provided for in this section; or
      (2) reject either the uninsured motorist coverage alone or the
      underinsured motorist coverage alone, if the insurer provides the
      coverage not rejected separately from the coverage rejected.
A rejection of coverage under this subsection by a named insured is a
rejection on behalf of all other named insureds, all other insureds, and
all other persons entitled to coverage under the policy. No insured may
have uninsured motorist property damage liability insurance coverage
under this section unless the insured also has uninsured motorist bodily
injury liability insurance coverage under this section. Following
rejection of either or both uninsured motorist coverage or underinsured
motorist coverage, unless later requested in writing, the insurer need
not offer uninsured motorist coverage or underinsured motorist
coverage in or supplemental to a renewal or replacement policy issued
to the same insured by the same insurer or a subsidiary or an affiliate
of the originally issuing insurer. Renewals of policies issued or
delivered in this state which have undergone interim policy
endorsement or amendment do not constitute newly issued or delivered
policies for which the insurer is required to provide the coverages
described in this section.
    (c) A rejection under subsection (b) must specify:
      (1) that the named insured is rejecting:
          (A) the uninsured motorist coverage;
          (B) the underinsured motorist coverage; or
          (C) both the uninsured motorist coverage and the underinsured
          motorist coverage;
      that would otherwise be provided under the policy; and
      (2) the date on which the rejection is effective.
    (d) The following apply to the coverage described in subsection (a)
in connection with a commercial umbrella or excess liability policy,
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                                  26
including a commercial umbrella or excess liability policy that is issued
or delivered to a motor carrier (as defined in IC 8-2.1-17-10) that is in
compliance with the minimum levels of financial responsibility set
forth in 49 CFR Part 387:
       (1) An insurer is not required to make available in a commercial
       umbrella or excess liability policy the coverage described in
       subsection (a).
       (2) An insurer that, through a rider or an endorsement, reduces or
       removes from a commercial umbrella or excess liability policy the
       coverage described in subsection (a) shall:
          (A) through the United States mail; or
          (B) by electronic means;
       provide to the named insured written notice of the reduction or
       removal.
       (3) An insurer that makes available in a commercial umbrella or
       excess liability policy the coverage described in subsection (a):
          (A) may make available the coverage in limits determined by
          the insurer; and
          (B) is not required to make available the coverage in limits
          equal to the limits specified in the commercial umbrella or
          excess liability policy.
    (e) A rejection under subsection (b) of uninsured motorist coverage
or underinsured motorist coverage in an underlying commercial policy
of insurance is also a rejection of uninsured motorist coverage or
underinsured motorist coverage in a commercial umbrella or excess
liability policy.
    (f) An insurer is not required to make available the coverage
described in subsection (a) in connection with coverage that:
       (1) is related to or included in a commercial policy of property
       and casualty insurance described in Class 2 or Class 3 of
       IC 27-1-5-1; and
       (2) covers a loss related to a motor vehicle:
          (A) of which the insured is not the owner; and
          (B) that is used:
             (i) by the insured or an agent of the insured; and
             (ii) for purposes authorized by the insured.
    (g) For purposes of subsection (f), "owner" means:
       (1) a person who holds the legal title to a motor vehicle;
       (2) a person who rents or leases a motor vehicle and has exclusive
       use of the motor vehicle for more than thirty (30) days;
       (3) the conditional vendee or lessee under an agreement for the
       conditional sale or lease of a motor vehicle; or
HEA 1260 — Concur
                                   27
       (4) the mortgagor under an agreement for the conditional sale or
       lease of a motor vehicle under which the mortgagor has:
           (A) the right to purchase; and
           (B) an immediate right of possession of;
       the motor vehicle upon the performance of the conditions stated
       in the agreement.
    (h) The following apply to the coverage described in subsection (a)
in relation to a personal umbrella or excess liability policy:
       (1) An insurer is not required to make available the coverage
       described in subsection (a) under a personal umbrella or excess
       liability policy.
       (2) An insurer that reduces or removes, through a rider or an
       endorsement, coverage described in subsection (a) under a
       personal umbrella or excess liability policy shall:
           (A) through the United States mail; or
           (B) by electronic means;
       provide to the named insured written notice of the reduction or
       removal.
       (3) An insurer that makes available the coverage described in
       subsection (a) under a personal umbrella or excess liability
       policy:
           (A) may make available the coverage in limits determined by
           the insurer; and
           (B) is not required to make available the coverage in limits
           equal to the limits specified in the personal umbrella or excess
           liability policy.
       (4) A rejection under subsection (b) of uninsured motorist
       coverage or underinsured motorist coverage in an underlying
       personal policy of insurance is also a rejection of uninsured
       motorist coverage or underinsured motorist coverage in a personal
       umbrella or excess liability policy.
    (i) A policy of insurance that provides coverage in excess of any
liability relating to a self-insured retention amount shall be
considered a commercial umbrella or excess liability policy under
subsection (d).
    SECTION 19. IC 27-7-6-0.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]: Sec. 0.5. Section 6 of this chapter, as amended in the 2026
session of the general assembly, applies to automobile insurance
policies that are issued, delivered, amended, or renewed on or after
January 1, 2027.
    SECTION 20. IC 27-7-6-6, AS AMENDED BY P.L.196-2021,
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                                   28
SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 6. (a) An insurer shall not fail to renew a policy
unless it mails to the named insured, at the address shown in the policy,
at least twenty (20) thirty (30) days advance notice of its intention not
to renew the policy.
    (b) If a policy was procured by an independent insurance producer
duly licensed by the state of Indiana, a notice of intent not to renew the
policy shall be mailed to the independent insurance producer at least
ten (10) days prior to the mailing of the notice of intention not to renew
to the named insured under subsection (a), unless such notice of intent
is or has been waived in writing by the independent insurance
producer.
    (c) This section does not apply:
      (1) if the insurer has manifested its willingness to renew; or
      (2) in case of nonpayment of premium.
However, notwithstanding the failure of an insurer to comply with this
section, the policy shall terminate on the effective date of any other
insurance policy with respect to any automobile designated in both
policies.
    (d) A notice of intention not to renew is not required under this
section if:
      (1) the insured is transferred from an insurer to an affiliate of the
      insurer for future coverage; and
      (2) the transfer results in the same or broader coverage.
    (e) Renewal of a policy shall not constitute a waiver or estoppel with
respect to grounds for cancellation which existed before the effective
date of such renewal.
    SECTION 21. IC 27-7-12-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 1. (a) Except as
provided in subsection (b), this chapter applies to policies of
insurance covering risks to property located in Indiana that take effect
or are renewed after June 30, 2001, and that insure loss of or damage
to:
      (1) real property consisting of not more than four (4) residential
      units, one (1) of which is the principal place of residence of the
      named insured; or
      (2) personal property:
          (A) in which the named insured has an insurable interest; and
          (B) that is used within a residential dwelling for personal,
          family, or household purposes.
    (b) Section 4 of this chapter, as amended in the 2026 session of
the general assembly, and section 6.5 of this chapter, as added in
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                                   29
the 2026 session of the general assembly, apply to policies of
insurance described in subsection (a) that are issued, delivered,
amended, or renewed on or after January 1, 2027.
    (b) (c) This chapter does not apply to the following:
      (1) A policy of inland marine insurance.
      (2) The cancellation or nonrenewal of an automobile insurance
      policy under IC 27-7-6.
      (3) The cancellation or nonrenewal of a commercial property and
      casualty insurance policy under IC 27-1-31-2.5.
    SECTION 22. IC 27-7-12-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 2. (a) As used in this
chapter, "aerial image" means an image of a named insured's
property captured from an airborne platform.
    (a) (b) As used in this chapter, "cancellation" refers to a termination
of property insurance coverage that occurs during the policy term.
    (b) (c) As used in this chapter, "nonpayment of premium" means the
failure of the named insured to discharge any obligation in connection
with the payment of premiums on policies of insurance subject to this
chapter, regardless of whether the payments are directly payable to the
insurer or its agent or indirectly payable under a premium finance plan
or extension of credit. The term includes the failure to pay dues or fees
where payment of the dues or fees is a prerequisite to obtaining or
continuing property insurance coverage.
    (c) (d) As used in this chapter, "nonrenewal" or "nonrenewed" refers
to a termination of property insurance coverage that occurs at the end
of the policy term.
    (d) (e) As used in this chapter, "renewal" or "to renew" refers to:
      (1) the issuance and delivery by an insurer at the end of a policy
      period of a policy superseding a policy previously issued and
      delivered by the same insurer; or
      (2) the issuance and delivery of a certificate or notice extending
      the term of an existing policy beyond its policy period or term.
    (e) (f) As used in this chapter, "termination" means a cancellation
or nonrenewal. The term does not include:
      (1) the requirement of a reasonable deductible;
      (2) reasonable changes in the amount of insurance; or
      (3) reasonable reductions in policy limits or coverage;
if the requirements or changes are directly related to the hazard
involved and are made on the renewal date for the policy. The term
does not include a transfer of a policy to another insurer.
    SECTION 23. IC 27-7-12-4, AS AMENDED BY P.L.196-2021,
SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
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                                   30
JULY 1, 2026]: Sec. 4. (a) Notice of nonrenewal by an insurer must:
      (1) be in writing;
      (2) be mailed to the named insured at the last known address of
      the named insured;
      (3) state the insurer's intention not to renew the policy upon
      expiration of the current policy period;
      (4) upon request of the named insured, be accompanied by a
      written explanation of the specific reasons for the nonrenewal;
      and
      (5) be mailed to the named insured at least twenty (20) sixty (60)
      days before the expiration of the current policy period; and
      (6) comply with section 6.5(a)(1) of this chapter if the insurer
      used aerial images as the sole reason for nonrenewing a
      policy.
    (b) If the policy was procured by an independent insurance producer
licensed in Indiana, the insurer shall mail notice of nonrenewal to the
insurance producer not less than ten (10) days before the insurer mails
the notice to the named insured under subsection (a), unless the
obligation to notify the insurance producer is waived in writing by the
insurance producer.
    (c) Notice of nonrenewal under this section is not required if:
      (1) the named insured is transferred from an insurer to an affiliate
      of the insurer for future coverage; and
      (2) the transfer results in the same or broader coverage.
    (d) If an insurer mails to an insured a renewal notice, bill,
certificate, or policy indicating the insurer's willingness to renew a
policy and the insured does not respond, the insurer is not required to
mail to the insured notice of intention not to renew.
    SECTION 24. IC 27-7-12-6.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 6.5. (a) When utilizing aerial
images as the sole reason for nonrenewing a policy, an insurer shall
do the following:
      (1) Ensure that the nonrenewal notice sent to the named
      insured under section 4 of this chapter includes information
      about how the named insured can request to review copies of
      the images of the property that were used to make the
      decision. Photos must have been taken within the past
      twenty-four (24) months.
      (2) Establish a point of contact and a process for a named
      insured to use to provide documentation of completion of the
      required work that the insurer communicates to the named
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                                 31
      insured under subdivision (1). The documentation must be
      used by the insurer in considering whether to uphold or
      reverse the nonrenewal.
      (3) Establish an appeal process that allows the named insured
      to correct any errors or misunderstandings related to the
      nonrenewal.
      (4) Provide the named insured at least sixty (60) days to cure
      the defects or conditions underlying a nonrenewal after the
      date the insurer identifies the specific conditions under
      subdivision (1). An insurer shall have the right to assess the
      work used to cure the defects or conditions to ensure they
      have been corrected in a manner that meets the standards
      originally communicated by the insurer under subdivision (1).
      (5) Offer a renewal policy to a named insured who submits
      proof that they have cured the defects or conditions identified
      under subdivision (1). However, an insurer may nonrenew the
      policy only for a reason unrelated to the defects or conditions
      identified under subdivision (1).
   (b) The department shall adopt rules under IC 4-22-2 to
effectuate the provisions of this section.
   SECTION 25. IC 27-7-18.7 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]:
   Chapter 18.7. Property and Casualty Insurance for
Condominium Units
   Sec. 1. As used in this chapter, "condominium" has the meaning
set forth in IC 32-25-2-7.
   Sec. 2. As used in this chapter, "condominium unit" has the
meaning set forth in IC 32-25-2-9.
   Sec. 3. As used in this chapter, "co-owner" has the meaning set
forth in IC 32-25-2-11.
   Sec. 4. As used in this chapter, "property and casualty
insurance" means one (1) or more of the types of insurance
described in IC 27-1-5-1, Class 2 and Class 3.
   Sec. 5. (a) This section applies to a condominium in which all of
the condominium units:
      (1) were designed and built for occupancy by not more than
      two (2) separate families; and
      (2) contain not more than two (2) separate living quarters.
   (b) Notwithstanding IC 32-25-8-9, the co-owners of a
condominium described in subsection (a) may obtain property and
casualty insurance coverage for the condominium units through
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                                   32
one (1) of the following methods:
      (1) By purchasing a master policy for property and casualty
      insurance.
      (2) By allowing each co-owner to purchase property and
      casualty insurance on an individual basis.
   (c) This section may not be construed to relieve the co-owners
from any obligation under IC 32-25-8-9 to provide insurance
coverage under a master policy for:
      (1) the land on which the condominium is located;
      (2) swimming pools and other recreational facilities; or
      (3) any other parts of the condominium existing for common
      use.
   SECTION 26. IC 27-8-11-8.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 8.5. (a) As used in this section,
"insurance producer" has the meaning set forth in IC 27-1-15.6-2.
   (b) An insurer shall provide any insurance producer who has
contracted with the insurer with access to a complete list of every
provider that has entered into an agreement with an insurer under
section 3 of this chapter.
   (c) An insurer shall make the information described in
subsection (b) available on the insurer's portal for insurance
producer communications.
   SECTION 27. IC 27-8-13-9.3, AS ADDED BY P.L.56-2025,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 9.3. (a) Except as provided in subsection
(b), this section applies to a Medicare supplement policy or certificate
delivered, issued, or renewed on or after January 1, 2026.
   (b) The amendments made to this section in the 2026 session of
the general assembly apply to a Medicare supplement policy or
certificate delivered, issued, or renewed on or after March 15,
2026.
   (b) (c) This section applies to:
      (1) an applicant who submits an application for a Medicare
      supplement policy or certificate before or during the six (6) month
      period beginning on the first day of the first month during which
      the applicant is:
          (A) at least sixty-five (65) years of age; and
          (B) timely enrolled for benefits under Medicare Part B without
          penalty under federal law; and
      (2) an applicant who:
          (A) is at least sixty-five (65) years of age;
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                                   33
         (B) is insured under a Medicare supplement policy or
         certificate;
         (C) submits an application for a Medicare supplement policy
         or certificate:
            (i) to an issuer that is different than the issuer of the
            applicant's current Medicare supplement policy or
            certificate; and
            (ii) within sixty (60) days of during the period beginning
            one (1) month before the applicant's birthday and ending
            one (1) month after the applicant's birthday; and
         (D) seeks to maintain the same type of lettered Medicare
         supplement plan, including any variation of the lettered plan.
   (c) (d) An issuer of a Medicare supplement policy or certificate
shall not deny, condition the issuance or effectiveness of, or
discriminate in the pricing of a Medicare supplement policy or
certificate because of the health status, claims experience, receipt of
health care, or medical condition of an applicant to which subsection
(b) (c) applies.
   (d) (e) A new Medicare supplement policy or certificate issued to an
applicant under subsection (b)(2) (c)(2) must go into effect on the first
day of the next month that is at least thirty (30) days after the signature
date on the application for the Medicare supplement policy or
certificate.
   SECTION 28. IC 27-13-9-1.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 1.5. (a) A health maintenance
organization shall provide any insurance producer who has
contracted with the health maintenance organization with access
to a complete list of every participating provider that provides
health care services through the health maintenance organization.
   (b) A health maintenance organization shall make the
information described in subsection (a) available on the health
maintenance organization's portal for insurance producer
communications.
   SECTION 29. IC 27-19-3-1.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 1.5. The commissioner shall have
the authority to do the following:
      (1) Establish any program, promulgate any rule, policy,
      guideline, or plan, or change any program, rule, policy, or
      guideline to:
         (A) implement;
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                                34
         (B) establish;
         (C) create;
         (D) administer; or
         (E) otherwise operate;
      a health benefit exchange.
      (2) Apply for, accept, or expend federal money related to the
      creation, implementation, or operation of a health benefit
      exchange.
      (3) Establish any advisory board or committee that the
      commissioner deems necessary to provide recommendations
      on the creation, implementation, or operation of a health
      benefit exchange.
   SECTION 30. IC 34-30-2.1-402, AS ADDED BY P.L.105-2022,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 402. IC 27-1-3-22 (Concerning persons or
entities reporting fraudulent insurance acts).
   SECTION 31. An emergency is declared for this act.
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Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date:  Time:
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